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Primary Residence Exemptions
There are three types of Primary Residence Exemption. The chart below shows the main differences and requirements.
Please see the chart below to determine which exemption you should apply for. Those seeking a Primary Residence Exemption must execute an affidavit and promissory note in addition to the application. There is a $30 application fee payable by cash or check for all Primary Residence Exemptions.
SUMMARY OF PRIMARY RESIDENCE RETT EXEMPTIONS:
Exemptions | Section (17) | Section (18) | Section (19) |
Amount | $160,000 | $160,000 | $240,000 |
Home Value Cap | None | None | $700,000 |
Eagle County Employee | N/A | Yes | Yes |
Affidavit of Primary Residence | Yes | Yes | Yes |
Promissory Note | 1 year | 1 year | 3 years |
Lien | Yes | Yes | Yes |
Instructions and Promissory Note and Affidavit | Section 17 RETT Exemption Instructions Section 17 Promissory Note and Affidavit | Section 18 RETT Exemption Instructions Section 18 Promissory Note and Affidavit | Section 19 RETT Exemption Instructions Section 19 Promissory Note and Affidavit |
Submit your application, affidavit and promissory note, and fee:
- By mail via USPS to Town of Avon, Finance Department, P.O. Box 975, Avon Colorado 81620.
- In person or by mail via FedEx/UPS to Town of Avon, Finance Department, 100 Mikaela Way, Avon Colorado 81620.
- Questions can be submitted to Carly Elena Fackler, cfackler@avon.org, or 970-748-4069
For more details, see the information on the specific tabs below:
(17) Primary Residence Exemption - The conditions of the Primary Exemption include:
- An affidavit and promissory note is required, along with the RETT application, and check or cash in the amount of $30.
- The property must meet the definition of a Primary Residence as provided in section 3.12.020 of the Town of Avon Municipal Code.
- Occupation and use of the residence as primary residence must occur within thirty (30) days of transfer of the real property. However, if indicated on the application, the Town Manager may grant an extension of an additional ninety (90) days if extenuating circumstances are found to exist.
- The first $160,000 of the purchase price is exempted from the 2% transfer tax, therefore the maximum exemption is $3,200. The exemption is only applicable to the buyer’s portion of the tax. The seller is not intended to benefit from the primary exemption.
- A Lien for the amount of exempted transfer tax is placed on the property for one full year after the date of acquisition.
- The Town will release the lien no sooner than one year after the acquisition date if the Borrower provides evidence that the property was used as a primary residence. Evidence may include a Colorado Driver’s License or ID and/or voter registration that lists the exempted property as the applicant’s current address.
- If the applicant does not meet these conditions or sells the property within the first year of residency, the amount of exempted transfer tax will be immediately due and payable along with interest assessed at 1% per month.
(18) Subsequent Primary Residence exemption
This exemption is used when an applicant has previously received the (17) Primary Residence exemption on another property.
- The applicant must execute all of the documents required for exemption (17).
- An affidavit and promissory note is required, along with the RETT application, and $30.
- The property must meet the definition of a Primary Residence as provided in section 3.12.020 of the Town of Avon Municipal Code.
- Purchaser must meet the definition of an Eagle County Employee and provide a letter from their employer stating they meet the guidelines.
- Occupation and use of the residence as primary residence must occur within thirty (30) days of transfer of the real property. However, if indicated on the application, the Town Manager may grant an extension of an additional ninety (90) days if extenuating circumstances are found to exist.
(19) Increased Primary Residence Exemption
- Exemption increase to $240,000 and can only be used if the other exemptions are not being utilized by the purchaser.
- Exemption only applies to purchase up to $700,000.
- An affidavit and promissory note is required, along with the RETT application, and a check or cash in the amount of $30.
- The property must meet the definition of a Primary Residence as provided in section 3.12.020 of the Town of Avon Municipal Code.
- Purchaser must meet the definition of an Eagle County Employee and provide a letter from their employer stating they meet the guidelines.
- Property must be occupied as primary residence for three (3) years or until sold by the purchaser.
- Purchaser must provide closing statement evidencing the purchase price and amount of RETT paid by purchaser.
- Promissory note and lien will not be released for three (3) years (or until the property is sold, if sooner).